Repeal the Medical Device Tax?

Saturday

Oct 12, 2013 at 6:23 AM

Congress is considering repealing the 2.3% tax on companies that produce medical devices, enacted as part of the Affordable Care Act (ACA) to help cover its costs. Advocates of repealing this tax claim that it hurts businesses, will increase unemployment and lead companies to move their operations to other countries. Before it is repealed, however, we must consider the accuracy of these claims and the reasons why the tax was initially enacted. ACA will vastly increase the number of insured Americans, actually increasing the customer base of these companies and thus substantially increasing their revenues, profits, and work force. This action will help the economy rather than hurt it. Despite all the rhetoric, no objective scientific studies appear to exist showing a negative economic impact of this tax.
Is it wrong to ask those who will reap profits from ACA to contribute a small amount back to help pay for more equitable health insurance in America? The ten largest medical device makers such as Johnson & Johnson are estimated to account for 86 percent of the sales of covered medical devices. Before decrying the evils of this tax, we should consider the reasons for its implementation and assess any objective scientific evidence about negative economic consequences. Certain businesses should not be unfairly burdened. Neither should they be unduly rewarded at the expense of those needing health care.
Barbara Burrell Southport